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France to scrap youth jobs law
 The jobs law crisis has politically hurt Dominique de Villepin. RELATED
QUICKVOTEYOUR E-MAIL ALERTSPARIS, France (CNN) -- The French government has scrapped a controversial youth job law, bowing to weeks of million-strong protests with a change of heart likely to further undermine the image of the country's embattled Prime Minister Dominique de Villepin. Students and trades unions claimed victory after President Jacques Chirac announced the decision on Monday. De Villepin made an address on national television to express regret over the failure of the law that would have made it easier to hire and fire workers under the age of 26. He announced that new measures were being presented to parliament, a move welcomed by protesters. The job contract "is dead and buried," said Jean-Claude Mailly of the Workers Force union, according to The Associated Press. "The goal has been achieved." Alain Olive, secretary-general of the UNSA union, said, "After more than two weeks of intense mobilization, the 12 syndicated groups of workers, university and high school students have won a great victory." The prime minister introduced the "first employment job contract," or CPE in French, after riots last fall exposed severe youth unemployment, now at 22 percent. Chirac signed the labor act into law on April 2, but then said he wanted its implementation suspended so that it could be amended . "I wanted to act quickly, because the dramatic situation and the despair of many youths demanded it," a somber De Villepin said in his televised address. The prime minister said he had sought a "better balance ... between more flexibility for the employer and more security for workers." "This was not understood by everyone, I'm sorry to say," he said. The protests and strikes over the labor law have been politically damaging for De Villepin who has seen his approval ratings plummet by half from nearly 50 percent. Business leaders also expressed concern that the unrest was harming France's economy. The crisis is estimated to have cost the country 150 million euros ($180 million) At the height of the demonstrations, he was sidelined in efforts to broker talks, with Interior Minister Nicolas Sarkozy -- a presidential hopeful -- taking the helm. But, according to Chirac, new measures in the stead of the controversial clause had come at the suggestion of De Villepin. Unveiling details of the replacement, Bernard Accoyer, the head of the ruling UMP party, said there would be no new law but the government would introduce policy that would directly help disadvantaged youths. "We realized the situation had become worrying, serious and dangerous for each and every one of us," he said. "We felt that by finding a replacement that was clear and quick, we would concentrate our efforts on fighting for the young people in the most difficulty. Accoyer said wider measures to reform France's employment laws, which enshrine job security but fail to reward productivity, would only come with consultation of workers and labor groups. Senate leader Josselin de Rohan said the new proposal was crafted with input from many groups. The turmoil over the contract showed that the ties between universities and companies must be improved, he said, so young people have the proper training. De Villepin also said he was concerned about the impact of the protests on students. "It's likely to threaten the end-of-year exams. The demonstrations in the streets certainly placed young people in a dangerous position," he said. The CPE would have allowed employers to fire workers 26 years old and younger at any point during their first two years on the job. Young people and unions responded bitterly, arguing that the measure would rob them of current job protections. Copyright 2006 CNN. All rights reserved.This material may not be published, broadcast, rewritten, or redistributed. Associated Press contributed to this report. 
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